Dubbed "the strictest battery safety regulation in history" by the industry, the "Safety Requirements for Power Storage Batteries Used in Electric Vehicles" was recently released and will take effect in July 2026. For the first time, it mandates that power batteries must exhibit "no fire, no explosion" behavior following thermal runaway, thereby shifting the industry’s focus from the "range race" to the "safety race."

        In this context, CATL ( 246,400, 0.14, 0.06% )、 BYD ( 348.210, 4.47, 1.30% )、 Xinwandada ( 18.230, -0.20, -1.09% ) Leading battery companies are taking the initiative to launch products that meet the new national standards, seizing the high ground in safety technology. This "no fire, no explosion" safety revolution will not only raise the industry’s entry barriers and accelerate the elimination of low-end production capacity but also drive market resources toward the top players, reshaping the competitive landscape of the sector. Industry consensus holds that, as safety becomes the core competitive advantage, companies genuinely committed to R&D and quality will gain even greater opportunities for growth.

        "Does not ignite or explode" after thermal runaway

        Recently, the mandatory national standard "Safety Requirements for Power Storage Batteries Used in Electric Vehicles" (GB38031-2025), jointly formulated by the Ministry of Industry and Information Technology, was officially released. Commonly referred to as the "New National Standard," it will come into effect on July 1, 2026. For the first time, the New National Standard introduces a requirement that, following thermal runaway triggered by internal short circuits, the battery must neither ignite nor explode—earning it the title of "the strictest battery safety regulation ever."

        Compared to the 2020 edition of the national standard, the new national standard adds a safety test following fast-charging cycles as a new single-cell testing item, while revising the thermal propagation test and introducing an additional bottom-impact test for battery pack or system assessments. These enhancements aim to reduce the risk of spontaneous combustion in power batteries right from the product design stage, further safeguarding consumers' lives and property.

        The new national standard covers 7 single-cell tests and 17 battery pack or system tests, among others. Compared to the 2020 version of the national standard, it strengthens and supplements numerous key technical requirements. According to a review by brokerage firms highlighting the upgraded features of the new standard, in addition to the existing methods of nail penetration and external heating, the new standard now introduces an internal heating sheet approach to trigger thermal runaway, simulating complex failure scenarios such as internal cell short circuits. Furthermore, the new standard adds a critical requirement for battery thermal propagation tests: no fire and no explosion must occur, while maintaining the existing condition of issuing an alarm signal within 5 minutes after thermal runaway begins. Additionally, it mandates that no visible smoke enters the passenger compartment within 5 minutes following the alarm. Finally, the new standard stipulates that once a single cell in the battery system triggers thermal runaway, there should be no ignition observed during at least a 2-hour monitoring period—and all monitored temperature points must remain below 60°C—to prevent delayed combustion.

        Additionally, new testing requirements have been added to address impacts on the bottom of battery packs or systems. Specifically, battery packs must withstand a 30-mm-diameter steel ball dropped from a height corresponding to 150 joules of energy—without any leakage, case rupture, ignition, or explosion—and must also meet insulation resistance standards. Furthermore, an additional safety test has been introduced after rapid charging cycles, mandating that batteries pass an external short-circuit test following 300 fast-charging cycles. This ensures no fire or explosion occurs, thereby maintaining robust safety redundancy as fast-charging technology continues to gain widespread adoption.

        Well-known business consultant and corporate strategy expert Huo Hongyi told reporters that the introduction of the new national standard represents a "restructuring of value" at the level of the standards system. At its core, the new standard shifts the industry's focus—from prioritizing "energy density as king" in batteries to placing "safety performance first." In other words, while in the past the goal was to "travel farther," now the priority is to "last longer." This shift signals that the electric vehicle industry is moving from its early phase of rapid expansion and scale-driven growth into a new stage dominated by quality-driven benefits.

       Leading companies officially announce they've "met the standards"

        Notably, with the recent announcement of the new national standard, leading power battery and vehicle manufacturers have already officially confirmed that their products meet the updated criteria. CATL It stated that the company is the first to have passed the new national standard. The company has consistently been at the forefront of driving the battery industry toward an era of "high standards." For instance, taking thermal runaway prevention as an example, the company introduced and mass-produced batteries equipped with its first-generation Non-Thermal Runaway (NP) technology as early as 2020, ensuring zero risk of fire or explosion—thus meeting the requirements of the new national standard six years ahead of schedule.

        Additionally, BYD, Xinwangda, Guoxuan High-Tech ( 25.110, 0.01, 0.04% ), CN Innovation, Zeekr Auto, Geely Auto, GAC Group ( 7.460, -0.08, -1.06% ), automakers and battery companies like XPeng Motors have also announced that their动力电池 products and the batteries integrated into their vehicles meet or exceed the new national standards.

        “Regarding the latest national standard recently issued by the Ministry of Industry and Information Technology, Xinwandada It is also one of the core organizations responsible for drafting and promoting this standard. Key requirements, such as the safety of aged battery cells, ensuring no fire or explosion during thermal propagation tests, have been implemented for years as Xinwanda's internal corporate safety standards. "Xinwanda emphasizes continuous technological innovation and iteration," said the company, "and remains committed to prioritizing product safety and reliability, having established a comprehensive management system dedicated to ensuring both."

        As one of the four key materials for lithium batteries, the separator's performance upgrade has become a crucial component in ensuring battery safety. Star Source Materials ( 10.080, -0.10, -0.98% ) told reporters that lithium battery fires and explosions are primarily caused by puncture-induced short circuits or thermal runaway leading to separator shrinkage. The aramid-coated separator technology developed by Xingyuan Materials demonstrates significant advantages in enhancing the safety performance of lithium batteries. "The company's aramid-coated separators feature high-temperature resistance, exceptional strength, and rapid electrolyte wetting capabilities. With a maximum rupture temperature exceeding 400°C, these separators can effectively slow down heat propagation, providing crucial, foundational support and protection for lithium battery safety—and cutting off potential safety hazards right at the material level."

        Given their superior energy density and enhanced safety features, solid-state batteries are widely regarded in the industry as the next-generation battery technology. In particular, following the release of the new national standards, higher safety requirements will be imposed on power batteries. Industry consensus suggests that safer solid-state batteries and sodium-ion batteries are poised for significant growth opportunities.

        This May, the leading company in battery anode materials Bettery ( 21.070, -0.54, -2.50% ) Announced a comprehensive solution for solid-state battery materials, covering the Beian FLEX semi-solid and GUARD all-solid-state product lines. Bettery The reporter was told that, in terms of safety, Beian has achieved a significant improvement across the board—from materials to cell design. Specifically, its high-nickel ternary cathode in-situ coating technology delays thermal runaway by 110 minutes. Meanwhile, the innovative use of inorganic solid-state electrolyte micro- and nano-coating technology boosts the nail penetration resistance rate by 80%. Additionally, the all-solid-state GUARD series completely eliminates the need for liquid electrolytes, effectively addressing safety concerns associated with lithium-ion batteries.

        Wanlian Securities pointed out that compared to traditional lithium batteries, solid-state batteries operate within a wider temperature range and exhibit superior thermal stability. Additionally, the solid electrolyte boasts excellent high-temperature resistance, non-flammability, and outstanding insulation properties, significantly enhancing overall safety performance. In practical applications, traditional lithium batteries are prone to uncontrolled short circuits when overheated, whereas solid-state batteries are much less likely to encounter such issues, easily meeting the new national standard of "no fire, no explosion." This recent upgrade in national safety standards further underscores the growing urgency for solid-state battery demand, accelerating the industry's transition toward large-scale production of these advanced energy storage solutions.

        Expected to break free from the low-price vicious cycle

        The new national standard has been dubbed the "strictest battery safety regulation in history," yet this "mandatory safety revolution" may also encounter some short-term challenges. "For some small and medium-sized enterprises, limited technological reserves and financial constraints could make it difficult to meet the new national standards within a short timeframe, putting them at risk of being phased out. This could lead to temporary volatility in the industry, with some companies facing operational difficulties or even bankruptcy. Meanwhile, to comply with the new regulations, businesses will need to ramp up investments in R&D and upgrade their production equipment—efforts that will inevitably drive up costs and potentially weigh on their profitability," said Yuan Shuai, co-founder and initiator of the Xin Zhi Pai New Quality Productivity Salon.

        It is understood that the implementation timeline for the new national standard is as follows: For vehicle models applying for type approval from July 1, 2026, onward, and for models already approved under the previous standard, the new requirements will take effect starting July 1, 2027. In other words, new energy vehicle manufacturers and power battery companies that have yet to meet the new national standard requirements will have approximately one year of transition period to upgrade their technologies.

        Over the past few years, the market has been overly focused on energy density and price competition, leading some companies to sacrifice quality in their pursuit of lower prices. A veteran industry insider in the lithium battery sector told reporters that, during a recent bidding process, the products supplied by the lowest-bidder failed to meet high-quality standards. This kind of price-driven "involution" is creating hidden risks for the industry. However, the newly implemented national standard—strengthening safety requirements—holds the potential to reverse the industry’s vicious cycle of "price-only thinking," encouraging a shift toward "quality-first" practices and accelerating the elimination of low-end production capacity.

        "When safety becomes a core competitive advantage, companies that genuinely prioritize R&D and quality will gain greater room for growth," noted the aforementioned lithium-battery industry insider. "The new national standard isn’t just an upgrade to technical specifications—it’s also reshaping the industry ecosystem."

        China Everbright Securities ( 17.530, -0.40, -2.23% )指出, the industry structure of the power battery supply chain is expected to become increasingly concentrated among leading players. As manufacturers need to integrate additional manufacturing processes focused on battery safety protection, existing production lines are facing upgrades and transformations. Moreover, R&D investments in emerging technologies like solid-state batteries are substantial, making it challenging for smaller and mid-sized companies to keep up. As a result, industry concentration is likely to accelerate further.

        Huohongyi stated that, in terms of competitive advantage, leading battery companies will widen the gap across three key dimensions: First, their "systematic safety design" capability, enabling them to develop integrated solutions ranging from thermal runaway suppression to multi-level protection systems. Second, their "product implementation and commercialization" speed, allowing them to swiftly translate laboratory breakthroughs into mass-produced automotive-grade applications. Third, the "brand trust premium"—as safety becomes the dominant theme, customers are more willing to pay for the "safer," more reliable choice.